Suppliers see no end to the steel crisis

Munich. Suppliers see no end to what they call a steel crisis and they believe carmakers will soon realize how serious the problem is.

Andreas Moehlenkamp, managing director of the association for the German steel and metalworking industry, forecast a "hot autumn" because the automobile industry will negotiate new long-term contracts with steel producers by the end of the year.

"It is then that automobile manufacturers will feel the pressure suppliers have been under since the first quarter," Moehlenkamp said.

"The situation for businesses within the steel and metal working industry remains very tense," said Theodor Tutmann, secretary general at the European industry association Euroforge.

Bernhard Jacobs, managing director of the association for the sheet-metal forming industry, believes that there is still danger that there will be a breakdown in the supply chain.

The performance of steel producers has suffered a lot during the past few weeks. Joachim Ahle, managing director and partner at the springs manufacturer Gebrueder Ahle in Lindlar, Germany, near Cologne, blames the low quality of the raw materials steel makers are being supplied. He said that poor quality of the materials has led to even more rejects than only a few months ago.